Klarinet Archive - Posting 000837.txt from 2003/08

From: Bill Hausmann <bhausmann1@-----.net>
Subj: Re: [kl] Market dominance
Date: Thu, 28 Aug 2003 22:20:30 -0400

At 01:29 AM 8/29/2003 +0100, Tony Pay wrote:
>On Thu, 28 Aug 2003 19:01:58 -0400, bhausmann1@-----.net said:
>
> > It might be instructive to note that, although the Sony Beta, and
> > possibly (as has been argued recently) the Macintosh computer, may
> > have set TECHNICAL standards, they did not (will not) achieve the
> > industry standard positions of VHS and Windows due to marketing
> > failures.
>
>No, it's not because of marketing failures; it's because a big company
>that has obtained a dominant position in those fields can undermine
>its competitors, even if their ideas are superior, by manipulating
>complementary market factors. They ignore the argument that in the end
>'nobody benefits', and buy lawyers who will agree to manipulate the
>legal system in the interest of the company.

Back when Apple and IBM were neck-and-neck in the then-new personal
computer game, Apple made the conscious decision to stay a closed system,
making and marketing all of their equipment exclusively (one of the
all-time BONEHEAD business moves!). IBM, however, went with an OPEN
system, inviting other manufacturers to make competing machines and
peripherals compatible with their machines. IBM did not corner the market
themselves, but the effect of competition among manufacturers of IBM
compatibles drove down computer prices and led to the complete market
dominance of their SYSTEM and, by extension, the supplier of its operating
software: Microsoft. (This is not to defend anything that Microsoft may
have done subsequently, but they got to that position more or less
legitimately.)

>Of course, despite what anyone may say, it wouldn't be a *disaster* if
>everyone played Buffet -- but it's better if we don't -- so let's not
>collude.

Agreed. If they don't have Selmer, Leblanc, Yamaha, etc., breathing down
their necks, they will have no incentive to improve. That's why I am glad
Apple managed to survive its blunder -- just to keep Microsoft on its toes!

Bill Hausmann

If you have to mic a saxophone, the rest of the band is TOO LOUD!

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